Firm cheats bank of Rs 437 crore

Firm cheats bank of Rs 437 crore

The CBI on Tuesday registered a case against an Ahmedabad firm for allegedly cheating the Central Bank of India of Rs 436.74 crore. Employees of the bank were also mentioned in the FIR.

The agency searched in nine places at Ahmedabad, Gandhinagar, Vadodara and Kutch after registering the case against Electrotherm (India) Limited, its officials and employees of the bank.

A case was filed invoking IPC sections relating to criminal conspiracy and cheating as well as provisions of the Prevention of Corruption Act.

According to the FIR, the director of Electrotherm and other unidentified public servants of the bank entered a criminal conspiracy and cheated the bank of money to the tune of Rs 436.74 crore.

It also said that standby Letters of Credit opened by the bank to facilitate trade in machinery and coal devolved.